Understanding Money

What is money?

• A type of good

• Anything that is acceptable in exchange for goods or services

• A form of barter

• Only coins and bills

What is the primary reason money must be durable?

• To be easily transported

• To withstand physical wear and tear

• To maintain a stable value

• To be universally accepted

Which of the following characteristics of money allows it to be broken down into smaller denominations?

• Acceptable

• Divisible

• Portable

• Uniformed

List three characteristics of money and explain why each is important.

Explain the function of money as a 'Medium of Exchange.'

Match the characteristics or functions of money on the left with their correct descriptions on the right by writing the letter in the blank.